Chief Executive Officer James Gorman, 55, has signaled his commitment to the fixed-income trading unit as some rivals have exited large parts of the business. Gorman has also identified higher profit margins at the brokerage and an increase in lending to clients through the private bank as major parts of his strategy to boost Morgan Stanley’s return on equity.

'These appointments reflect the importance to the firm of the businesses these individuals run and the leadership role each plays in driving our firm strategy and our future success', Gorman wrote in an internal memo, according to the person.